Strengthening Prohibitions Against the Corporate Practice of Medicine and Promoting Behavioral Change for Improved Health Outcomes

Strengthening Prohibitions Against the Corporate Practice of Medicine and Promoting Behavioral Change for Improved Health Outcomes

Introduction:

The corporate practice of medicine (CPOM) has become a significant concern in the healthcare industry, with corporate entities exerting increasing control over clinical operations and decision-making. Despite the existence of CPOM laws in many states, the corporatization of medicine continues to persist. In this article, we will explore the reasons behind this trend and discuss how the CPOM doctrine can be strengthened to protect the medical profession and the public interest. Additionally, we will delve into the concept of behavioral economics and its potential application in promoting positive health outcomes.

The Rise of Corporate Influence in Medicine:

In recent years, corporate investors in healthcare have gained significant market power and pursued aggressive revenue models. This has resulted in the majority of physicians becoming salaried employees, with many medical practices being owned by hospitals or corporate entities. While states have implemented CPOM laws to restrict unlicensed lay entities from owning medical practices, corporations have found ways to circumvent these restrictions through complex deal structures and management-services agreements.

Primary Risks of Corporatized Medicine:

Emerging evidence suggests three primary risks associated with corporatized medicine. Firstly, market consolidation and exploitation of payment loopholes contribute to increased healthcare prices and spending. Secondly, changes in practice patterns and pressures to reduce staffing can negatively impact patient care. Lastly, physicians may experience moral injury and burnout due to corporate influence on clinical operations and decision-making. These risks highlight the urgent need for stronger CPOM regulations.

Strengthening the CPOM Doctrine:

To effectively curb the corporatization of medicine, it is essential to address existing loopholes and enhance regulatory measures. One approach is to close loopholes that permit corporate ownership in states that have physician-ownership requirements for professional corporations (PCs). For example, limited-liability companies and partnerships should be subject to the same ownership requirements as PCs. This would ensure that ultimate control remains in the hands of licensed professionals.

Actionable Advice:

• 1. Advocate for Legislative Changes: Healthcare professionals and organizations should actively engage in advocacy efforts to strengthen CPOM laws. By raising awareness and lobbying for legislative changes, they can contribute to the protection of the medical profession and the public interest.

• 2. Promote Physician Ownership: Encouraging physician ownership in medical practices can help maintain control over clinical operations. Physicians should explore opportunities to establish or join physician-owned practices, thus reducing the influence of corporate entities on care delivery.

• 3. Support Ethical Decision-Making: Healthcare systems and organizations should prioritize ethics in decision-making processes. By fostering a culture of transparency, open communication, and shared decision-making, they can mitigate the negative impact of corporate influence on patient care and physician well-being.

Behavioral Economics and Health Outcomes:

In addition to addressing the corporate practice of medicine, incorporating principles from behavioral economics can play a significant role in improving health outcomes. By understanding the common decision errors that individuals make, healthcare providers can design interventions that promote positive behavioral change. For instance, leveraging immediate gratification and losses over gains can incentivize individuals to engage in regular physical activity.

Conclusion:

The corporatization of medicine poses significant risks to the medical profession and patient care. Strengthening the CPOM doctrine and implementing legislative changes are crucial steps in protecting the integrity of the healthcare system. Additionally, incorporating insights from behavioral economics can empower individuals to make healthier choices and improve overall health outcomes. By taking action and prioritizing ethical decision-making, we can create a healthcare system that prioritizes the well-being of both patients and healthcare professionals.